CoinDCX, one of India’s largest crypto exchanges, has confirmed it lost about $16 million, reversing its chief executive’s earlier insistence that reports of a breach were a false alarm.
About 15.99 million USDT was drained on the Tron network on 21 October. CoinDCX said an internal process meant to move customer deposits out of retired wallets had failed. Those wallets dated back to the exchange’s 2025 hack.
CoinDCX said it has absorbed the loss itself, and that customer funds and balances are not affected.
From false alarm to confirmed loss
When blockchain researchers and the Arkham tracker first flagged the outflows, chief executive Sumit Gupta called the reports a “false alarm” on X.
He said the wallets were “not breached,” and that the flagged addresses had been compromised back in July 2025.
On-chain investigator ZachXBT disputed that account. He said the wallet had still been moving user deposits into CoinDCX’s current hot wallet as recently as April and May, and urged customers to withdraw their funds.
CoinDCX’s later disclosure confirmed the loss.
The 2025 hack
In July 2025, CoinDCX lost about $44 million in a hack it blamed on a server breach. The exchange launched a bounty to recover the stolen funds, and an employee was later arrested in connection with the incident.
Together, the two incidents bring CoinDCX’s losses to nearly $60 million.
What happens next
Who drained the wallets, and where the funds went, had not been reported at the time of writing. The key questions for CoinDCX’s users are whether the old wallets were still receiving deposits, as ZachXBT says, and what controls the exchange is putting in place to stop it happening again.
